Morgan Stanley Direct Lending Fund (MSDL) Projected to Post Earnings on Thursday

Key Points

• Morgan Stanley Direct Lending Fund (MSDL) is set to report results after the close on Thursday, May 7, with analysts forecasting $0.45 EPS and $91.894M in revenue; last quarter the fund reported $0.49 EPS but revenue of $49.57M versus estimates of $97.30M.
• The fund recently paid a quarterly dividend of $0.45 (annualized $1.80) implying an 11.9% yield, but it carries a high payout ratio of 128.57%, which may be unsustainable.
• Insiders including the CEO increased their holdings and several institutions added to positions, yet Wall Street’s consensus is a “Hold” with a target price of $15.54.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) is expected to be posting its results after the market closes on Thursday, May 7th. Analysts expect Morgan Stanley Direct Lending Fund to post earnings of $0.45 per share and revenue of $91.8940 million for the quarter.

Morgan Stanley Direct Lending Fund (NYSE:MSDL - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.49 EPS for the quarter, hitting analysts' consensus estimates of $0.49. The business had revenue of $49.57 million for the quarter, compared to analyst estimates of $97.30 million. Morgan Stanley Direct Lending Fund had a net margin of 30.73% and a return on equity of 9.88%. On average, analysts expect Morgan Stanley Direct Lending Fund to post $2 EPS for the current fiscal year and $2 EPS for the next fiscal year.

Morgan Stanley Direct Lending Fund Stock Performance

Shares of MSDL stock opened at $15.09 on Thursday. The company's fifty day simple moving average is $14.76 and its 200-day simple moving average is $16.01. The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 1.19. The firm has a market cap of $1.29 billion, a PE ratio of 10.78 and a beta of 0.35. Morgan Stanley Direct Lending Fund has a 12 month low of $13.66 and a 12 month high of $20.00.

Morgan Stanley Direct Lending Fund Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, April 24th. Stockholders of record on Tuesday, March 31st were given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 11.9%. The ex-dividend date of this dividend was Tuesday, March 31st. Morgan Stanley Direct Lending Fund's payout ratio is currently 128.57%.

Insider Buying and Selling at Morgan Stanley Direct Lending Fund

In related news, insider Jeff M. Day acquired 5,000 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were purchased at an average cost of $14.89 per share, for a total transaction of $74,450.00. Following the completion of the acquisition, the insider directly owned 22,818 shares in the company, valued at approximately $339,760.02. This trade represents a 28.06% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Michael Jr. Occi acquired 7,000 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was bought at an average price of $14.87 per share, for a total transaction of $104,090.00. Following the completion of the acquisition, the chief executive officer owned 28,500 shares of the company's stock, valued at approximately $423,795. The trade was a 32.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.21% of the stock is owned by insiders.

Hedge Funds Weigh In On Morgan Stanley Direct Lending Fund

Several institutional investors and hedge funds have recently modified their holdings of MSDL. Royal Bank of Canada grew its stake in shares of Morgan Stanley Direct Lending Fund by 53.2% in the first quarter. Royal Bank of Canada now owns 155,232 shares of the company's stock valued at $3,098,000 after acquiring an additional 53,902 shares in the last quarter. Millennium Management LLC grew its stake in shares of Morgan Stanley Direct Lending Fund by 682.5% in the first quarter. Millennium Management LLC now owns 198,684 shares of the company's stock valued at $3,966,000 after acquiring an additional 173,292 shares in the last quarter. Cetera Investment Advisers grew its stake in shares of Morgan Stanley Direct Lending Fund by 83.6% in the second quarter. Cetera Investment Advisers now owns 26,180 shares of the company's stock valued at $490,000 after acquiring an additional 11,923 shares in the last quarter. Quantbot Technologies LP acquired a new position in shares of Morgan Stanley Direct Lending Fund in the second quarter valued at about $118,000. Finally, Invesco Ltd. grew its stake in shares of Morgan Stanley Direct Lending Fund by 35.3% in the second quarter. Invesco Ltd. now owns 50,500 shares of the company's stock valued at $945,000 after acquiring an additional 13,186 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. JPMorgan Chase & Co. cut their price objective on shares of Morgan Stanley Direct Lending Fund from $16.50 to $14.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. UBS Group boosted their price objective on shares of Morgan Stanley Direct Lending Fund from $16.00 to $16.25 and gave the stock a "neutral" rating in a research report on Monday, April 20th. Wells Fargo & Company dropped their price target on shares of Morgan Stanley Direct Lending Fund from $16.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Monday, March 2nd. Keefe, Bruyette & Woods dropped their price target on shares of Morgan Stanley Direct Lending Fund from $16.50 to $16.00 and set a "market perform" rating on the stock in a research report on Thursday, April 16th. Finally, Royal Bank Of Canada dropped their price target on shares of Morgan Stanley Direct Lending Fund from $18.00 to $16.00 and set a "sector perform" rating on the stock in a research report on Thursday, March 5th. One analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, Morgan Stanley Direct Lending Fund has an average rating of "Hold" and a consensus target price of $15.54.

About Morgan Stanley Direct Lending Fund

Morgan Stanley Direct Lending Fund NYSE: MSDL is a closed-end management investment company that seeks to provide investors with attractive current income and the potential for capital appreciation. The fund primarily invests in senior secured loans and other debt instruments issued by middle-market companies. By focusing on floating-rate structures, it aims to offer a measure of protection against rising interest rates while generating regular cash distributions.

The fund's investment strategy centers on building a diversified portfolio of direct lending opportunities across a broad range of industries, including healthcare, business services, and industrials.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.